THE EFFECT OF CHANGE MANAGEMENT ON JOB SATISFACTION IN COMMERCIAL BANKS IN CAMEROON (A CASE STUDY OF NFC BANK BUEA)

CHAPTER ONE

NTRODUCTION

Background of the Study 

The banking and finance industry has been undergoing continuous transformation. Financial institutions are confronted with a substantial challenge in the form of heightened regulations and substantial shifts in consumer behaviour (Kaiser & Ringlstetter, 2018). Undoubtedly, in recent times, the financial services sector has faced significant external pressures across the globe due to technological progress, the pervasive economic crisis, and deregulatory policies. This has necessitated that financial institutions possess the ability to select the appropriate investment opportunities while demonstrating a critical degree of flexibility to fulfil the organization's liquid requirements over time (Barbaroux, 2017). As a result, a limited number of banks have been compelled to outline critical strategies, such as mergers and acquisitions, in order to remain concentrated. This situation, along with others, has placed significant pressure on the performance of numerous institutions in the aftermath, necessitating ongoing organisational adjustments to remain competitive. According to Moran and Brighton (2018), change management is the process of continuously realigning the direction, structure, and capabilities of an organisation in order to meet the ever-evolving demands of internal and external customers. In contemporary management, the prevailing consensus is that change has evolved into an ongoing phenomenon that necessitates prudent management and oversight to ensure the longevity of an organisation. Innovation, political climate, demographics of the workforce, societal values, the global economy, information systems, and the marketplace are all factors that have a substantial impact on the processes, services, and products that are developed. The ascent of these powers has generated a dynamic, erratic, demanding, and often destructive external environment for organisations that are unprepared or incapable of responding (Burnes, 2017). It is imperative to underscore that change management encompasses the introduction of novel frameworks, modifications to processes and structures, the appointment and reassignment of personnel, and the potential impact on staff rationalisation. All of these factors have the potential to significantly and rapidly affect the employees of the organisation. If not properly managed, they may result in negative work attitudes and even job dissatisfaction (Jones et al., 2018). Practically speaking, it has been observed that employees frequently react negatively to change due to elevated levels of work stress and anxiety that are frequently associated with the process of change (Jones et al., 2018). Moreover, research has shown that employees are also concerned regarding the efficacy of change and its implications for their work (Bartunek et al., 2016). Consequently, the level of preparation and overall management of a change process become crucial, as it constitutes a noteworthy concern for employees (Korsgaard et al., 2020). 

1.2 Statement of the Problem 

A considerable number of banking institutions in Cameroon have experienced substantial transformations as a result of factors such as globalisation, technological advancements, competition, and regulatory demands (Njoroge, 2018). In response, banks in Cameroon have implemented various strategies to decrease transaction costs, including workforce reduction through workforce downsizing of senior employees, mergers to enhance market visibility, and the introduction of mobile banking, automated teller machines (ATMs), and agency banking (Njoroge, 2018). Notwithstanding this transition, certain institutions in Cameroon have been unable to achieve the anticipated level of employee performance due to the fact that a portion of the workforce perceives these changes as threatening in nature, citing concerns such as job loss, security, the status quo, and alterations in work schedules (Cytonn, 2016). In Cameroonian banks, the impact of change management on employee job satisfaction has received inadequate consideration and research. Muia (2015) examined the impact of change management challenges on employee performance in tertiary institutions, whereas Nkuraru (2016) examined the effect of change management on employee performance. The challenges associated with strategic change management at Taifa Cables and Retreads Limited in Mombasa City were the subject of Odenyo and Kerongob's (2019) research. To fill extant theoretical, conceptual, and contextual gaps, it was necessary to examine the impact of change management on job satisfaction in commercial banks in Cameroon (a case study of NFC bank Buea).

1.3 Objectives of the Study 

The main objectives of this study is to examine the effect of change management on job satisfaction in commercial banks in Cameroon (a case study of NFC bank Buea). Specifically the study intends to:

To determine whether there exist a significant relationship between change management and employee's job satisfaction

To determine effect of leadership change on job satisfaction in NFC bank Buea, Cameroon.

To determine effect of change in technology on job satisfaction in NFC bank Buea, Cameroon.

To determine effect of change in organizational structure on job satisfaction in NFC bank Buea, Cameroon.

1.4   Research Questions

Is there a significant relationship between change management and employee's job satisfaction?

What is effect of leadership change on job satisfaction in NFC bank Buea, Cameroon?

What is effect of change in technology on job satisfaction in NFC bank Buea, Cameroon?

What is the effect of change in organizational structure on job satisfaction in NFC bank Buea, Cameroon?

1.5   Research Hypothesis

Ho: There is no significant relationship between change management and employee's job satisfaction.

Ha: There is a significant relationship between change management and employee's job satisfaction.

1.6 significance of the study 

The study will help in theory development by giving insights to the best practices to adopt to manage change in the banking industry. Other studies on change management have been done mostly in developed world and in other sectors other than the banking industry. This study will highlight insights of best practices to adopt to manage change. The study also acts as a guide in coming up with frameworks of critical factors that influence strategic change management. Such frameworks are available for future theory building and empirical testing. 

The study findings are expected to benefit management in NFC bank Buea, Cameroon to obtain effective performance from their workers by using new approaches to change management. 

The study will also be useful to leaders and managers in organizations by employing leadership styles in relevant situations effectively. This would help reduce social accidents, wastage of and internal conflicts in the working environment. 

The findings of the study is important to NFC bank Buea, Cameroon, as it guides to identify and analyze changes that are aimed at increasing organizational efficiency, increase initiative and manage strategic change better in the future.

The research will be useful to future researchers, students and academicians in understanding the effect and importance of the different changes in the management on job satisfaction. By exploring how this study will reveal new findings and adding to the existing knowledge. 

The study will be beneficial to the researcher in pursuit of knowledge about challenges of change management and the practices to adopt to manage the challenges of change within the organization. 

The result adds value to the literature available in implementing change management initiatives especially in public sector in Cameroon. 

1.7     Scope of the Study

The scope of this study borders on the effect of change management on job satisfaction in commercial banks in Cameroon (a case study of NFC bank Buea). Empirically,  the study will Hence the study will be delimited to 

1.8 Limitations Of The Study

The researcher encountered minor obstacles when conducting the study, as with any human endeavor. The significant constraint was the scarcity of literature on the subject due to the nature of the discourse, so the researcher incurred more financial expenses and spent more time sourcing for relevant materials, literature, or information and in the data collection process, which is why the researcher resorted to a limited choice of sample size. Furthermore, the researcher did this investigation alongside other academic activities. Furthermore, the sample size was limited because only a few respondents were chosen to answer the research instrument, therefore the results cannot be generalized to other secondary schools outside the state. Despite the constraints encountered during the research, all elements were minimized in order to provide the best results and make the research effective.

1.9 Definition Of Terms

Satisfaction: This is a feeling of happiness of pleasure because you have achieved something or get what you wanted.